HM Treasury

Contingent Liability Notification

baroness neville-rolfe: My honourable friend the Economic Secretary to the Treasury (Simon Kirby) has today made the following Written Ministerial Statement.I can today confirm that I have laid a Treasury Minute informing the House of the contingent liability that HM Treasury has taken on in authorising the sale of a portfolio of Bradford & Bingley loans acquired during the financial crisis under the last Labour Government. This includes certain remote fundamental market-standard warranties which are capped at 100% of the final sale price. The maximum contingent liability arising from these remote warranties is capped at the total consideration received, giving a maximum contingent liability of £11.9 billion. These fundamental warranties are considered to be so remote that they do not meet the definition of a contingent liability requiring disclosure under International Financial Reporting Standards. However, they are disclosed as remote contingent liabilities under principles of Parliamentary accountability. Further market-standard time and valued capped warranties and indemnities confirming regulatory, legislative, and contractual compliance have been provided to the purchasers. The maximum contingent liability arising is approximately £0.79 billion. I will update the House of any further changes to Bradford & Bingley as necessary.


This statement has also been made in the House of Commons: 
HCWS595

Statutory Report on the UK Bilateral Loan to Ireland

baroness neville-rolfe: My right honourable friend the Chief Secretary to the Treasury (David Gauke) has today made the following Written Ministerial StatementHM Treasury has today provided a further report to Parliament in relation to the bilateral loan to Ireland as required under the Loans to Ireland Act 2010. The report relates to the period from 1 October 2016 to 31 March 2017. A written ministerial statement on the previous statutory report regarding the loan to Ireland was issued to Parliament on 13 October 2016, Official Report, column 15WS.


This statement has also been made in the House of Commons: 
HCWS596